Hrm Overview Final

7/28/2019 Hrm Overview Final

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2005 Prentice Hall Inc.All rights reserved.

PowerPoint Presentation by Charlie CookThe University of West Alabama

t e n t h e d i t i o n

Gary Dessler

Part 1 IntroductionChapter1

The Strategic Role of

Human Resource Management


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2005 Prentice Hall Inc. All rights reserved. 12

Human

Resources???


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People???


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Most Important Assetof the company

Human Resources


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Management

Management processes

The five basic functions ofplanning, organizing, staffing,leading, and controlling.


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The Management Process

Planning involves determining a future course ofaction. The planning process begins by decidingwhat is desired; then a way is designed foraccomplishing that objective

Organizing refers to the administrative structure ofthe organization. It involves putting the pieces ofthe system together in such a way that desiredresults can be achieved. It requires decisionsregarding who, what, where, when and how

Staffing involves selection and training of thepersonnel who will operate the system


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The Management Process

Directing refers to the issuance ofcommands or orders, making suggestions,

or otherwise motivating subordinates to

perform their assigned duties in a timely andefficient manner

Controlling involves measuring the results of

operations, deciding if they are acceptable,

and instituting corrective action if need be


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Human resource management (HRM)

The policies and practices involved in

carrying out the people or humanresource aspects of a managementposition, including recruiting,

screening, training, rewarding, andappraising.


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Personnel Aspects Of A Managers Job

Conducting job analyses (determining the nature of each

employees job)

Planning labor needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Managing wages and salaries (compensating employees)

Providing incentives and benefits

Appraising performance

Communicating (interviewing, counseling, disciplining)

Training and developing managers

Building employee commitment


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Personnel Mistakes

Hire the wrong person for the job

Experience high turnover

Have your people not doing their best

Waste time with useless interviews

Have your company in court because of discriminatory actions

Have your company cited by OSHA for unsafe practices

Have some employees think their salaries are unfair and

inequitable relative to others in the organization

Allow a lack of training to undermine your departmentseffectiveness

Commit any unfair labor practices


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Basic HR Concepts

Getting results The bottom line of managing

HR creates value by engaging

in activities that produce

the employee behaviors

the company needs to

achieve its strategicgoals.


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Line and Staff Aspects of HRM

Line managerA manager who is authorized to direct the work of

subordinates and is responsible for accomplishingthe organizations tasks.

Staff managerA manager who assists and advises line managers.


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HR Department Organizational Chart (Large Company)

Figure 11Source:Adapted from BNA Bulletin to Management, June 29, 2000.


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Line Managers HRM Responsibilities

1. Placing the right person on the right job

2. Starting new employees in the organization (orientation)

3. Training employees for jobs new to them

4. Improving the job performance of each person

5. Gaining creative cooperation and developing smooth workingrelationships

6. Interpreting the firms policies and procedures

7. Controlling labor costs

8. Developing the abilities of each person

9. Creating and maintaining department morale

10. Protecting employees health and physical condition


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Examples of HR Job Duties

Recruiters Search for qualified job applicants.

Equal employment opportunity (EEO)

coordinators

Investigate and resolve EEO grievances, examineorganizational practices for potential violations,and compile and submit EEO reports.

Job analysts

Collect and examine information about jobs toprepare job descriptions.


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Examples of HR Job Duties (contd)

Compensation managers Develop compensation plans and handle the

employee benefits program.

Training specialists

Plan, organize, and direct training activities.

Labor relations specialists

Advise management on all aspects of unionmanagement relations.


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Cooperative Line and Staff HRManagement

1. The line managers responsibility is to specify the

qualifications employees need to fill specific

positions.

2. HR staff then develops sources of qualifiedapplicants and conduct initial screening interviews

3. HR administers the appropriate tests and refers the

best applicants to the supervisor (line manager),

who interviews and selects the ones he or shewants.


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Measuring HRs Contribution

Strategy The companys long-term plan for how it will

balance its internal strengths and weaknesses withits external opportunities and threats to maintain a

competitive advantage. HR managers today are more involved in partnering with

their top managers in both designing and implementing

their companies strategies.

Top management wants to see, precisely, how theHR managers plans will make the company morevaluable.


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HR Metrics

Absence Rate

[(Number of days absent in month) (Average number ofemployees during mo.) (number of workdays)] 100

Cost per Hire

(Advertising + Agency Fees + Employee Referrals + Travel

cost of applicants and staff + Relocation costs + Recruiterpay and benefits) Number of Hires

Health Care Costs per Employee

Total cost of health care Total Employees

HR Expense Factor

HR expense Total operating expense

Figure 15

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T.

Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 13

20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers,

Employees, and Financial Metrics, Human Resource Management39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce

Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.


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HR Metrics (contd)

Human Capital ROI

Revenue (Operating Expense [Compensation cost +Benefit cost]) (Compensation cost + Benefit cost)

Human Capital Value Added

Revenue (Operating Expense ([Compensation cost +

Benefit Cost]) Total Number of FTE

Revenue Factor

Revenue Total Number of FTE

Time to fillTotal days elapsed to fill requisitions Number hired

Figure 15 (contd)

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey,

and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review,

January/February 2000, pp. 1320;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to

Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management39,

no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA

2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.


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HR Metrics (contd)

Training Investment Factor

Total training cost Headcount

Turnover Costs

Cost to terminate + Cost per hire + Vacancy Cost + Learningcurve loss

Turnover Rate

[Number of separations during month Average number ofemployees during month] 100

Workers Compensation Cost per EmployeeTotal WC cost for Year Average number of employees

Figure 15 (contd)

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey,

and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review,

January/February 2000, pp. 1320;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to

Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management39,

no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA

2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.


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Strategy and the Basic HR Process

Figure 18

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